Air Transport USM Market Size

Air Transport USM Market Size

Air Transport USM Market was valued at USD 7.9 billion in 2023 and is estimated to register a CAGR of over 4.5% between 2024 & 2032. The market is expected to witness a growing demand for air transport USMs due to the rising demand for more air transport.

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For instance, in June 2023, a report released by the International Air Transport Association (IATA) stated that the overall air travel growth will continue to rise resulting in more aircraft being used. According to IATA, the total traffic in March 2023 rose 52.4% compared to March 2022. Domestic traffic witnessed 34.1 increase in comparison to March 2022 and the total March 2023 domestic traffic reached 98.9% of the March 2019 levels. This increasing demand for air travel across the globe drives the growth of market as USM provides a cost-effective alternative for airlines to quickly obtain parts, ensuring the timely maintenance of aircraft to meet the growing passenger demand.

The growing focus of airlines on cost reduction is also one of the major drivers of growth for the air transport USM market. Used Serviceable Materials (USMs) are less expensive than new OEM components, saving costs between 50% and 80%. This cost advantage is extremely appealing to airlines trying to reduce operational expenditures and increase profits. Also, the aviation sector is extremely competitive, and airlines have tight profit margins. Rising fuel prices, airport taxes, and other operating expenditures make USM an appealing choice, allowing airlines to remain competitive while successfully managing costs. For instance, in October 2023, ST Engineering introduced a new program that provides cost-effective component options for old aircraft. The company aims to use its huge inventory of used parts and skills to repair & refurbish them, providing cost-effective alternatives to new components.

The air transport USM market is facing a major challenge due to its highly stringent regulatory compliances, potentially slowing down market growth. To meet regulatory standards, used components must be thoroughly inspected, tested, and documented. This significantly increases the time, effort, and expense of the procedure compared to new components, discouraging certain vendors from joining the market. Along with this, different countries and regulatory agencies follow their set of laws and standards for USM, which adds uncertainty and complexity to international operations. Airlines and providers need to manage a variety of rules, which increases compliance obligations, thereby hindering market growth.